CAIJUN Management & Consulting

1.The company has long been focusing on the innovation, research and development, production of high-end medical devices in the field of cerebrovascular intervention and providing innovative medical solution services. It has a full product pipeline and solutions for hemorrhage, ischemia and access categories.
2.At the end of 2022, facing the coming business opportunities of national volume-based procurement, Ms. Wang Chen, the general manager of the company, was full of a sense of crisis. Although Jiaqi Biomedical has made outstanding achievements in the research and development of high-end medical devices, its products have no cost advantages compared with industry benchmarks. If this situation cannot be reversed in a timely manner, the company will fall into a dilemma and even face critical survival challenges when responding to volume-based procurement opportunities.
3.How to resolve this crisis, accelerate cost reduction and gain competitive advantages? The company therefore launched lean transformation activities.
4.Through on-site investigation, it is found that the product cost losses of Jiaqi are mainly reflected in three aspects: low production efficiency, high product defect rate and low inventory turnover. Based on this situation, Teacher Chen selected the company's coil products to build a lean benchmark production line. It aims to achieve cost reduction through the improvement of this product family, cultivate the improvement team of Jiaqi through the project, and realize the cultivation of internal independent improvement capabilities.
Cost Reduction of 15.3% through Lean Benchmark Production Line Improvement
1. With the training of lean tools including VSM analysis, production line planning and design, production line balancing, standardized work, 5S and visual management improvement, synchronized operation optimization and water spider logistics improvement, the lean improvement capability of the project team was enhanced, and the company's improvement benchmark was established.
2. The quantitative indicators are achieved as follows: 1. Labor efficiency per capita increased by 42.8%, 2. In-line defect rate decreased by 83.1%, 3. Production lead time shortened by 22.3%.
3. Finally, the cost reduction ratio of a single product recognized by financial accounting reached 15.3%, with an annual cost saving of approximately 1.5 million.